Electoral Accountability and Local Government Spending in Indonesia

44 Pages Posted: 20 Apr 2016

See all articles by Ambar Narayan

Ambar Narayan

World Bank, Poverty Global Practice

Emmanuel Skoufias

World Bank

Basab Dasgupta

World Bank

Kai Kaiser

World Bank - Indonesia Resident Mission

Date Written: February 1, 2014

Abstract

This paper takes advantage of the exogenous phasing of direct elections in districts and applies the double-difference estimator to measure impacts on (i) human development outcomes and (ii) the pattern of public spending and revenue generation at the district level. The analysis reveals that four years after the switch to direct elections, there have been no significant effects on human development outcomes. However, the estimates of the impact of Pilkada on health expenditures at the district level suggest that directly elected district officials may have become more responsive to local needs at least in the area of health. The composition of district expenditures changes considerably during the year and sometimes the year before the elections, shifting toward expenditure categories that allow incumbent district heads running as candidates in the direct elections to "buy" voter support. Electoral reforms did not lead to higher revenue generation from own sources and had no effect on the budget surplus of districts with directly elected heads.

Keywords: Subnational Economic Development, Parliamentary Government, E-Government, Public Sector Expenditure Policy, Debt Markets

Suggested Citation

Narayan, Ambar and Skoufias, Emmanuel and Dasgupta, Basab and Kaiser, Kai, Electoral Accountability and Local Government Spending in Indonesia (February 1, 2014). World Bank Policy Research Working Paper No. 6782, Available at SSRN: https://ssrn.com/abstract=2398152

Ambar Narayan

World Bank, Poverty Global Practice ( email )

1818 H Street, NW
Washington, DC 20433
United States

Emmanuel Skoufias

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Basab Dasgupta

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Kai Kaiser

World Bank - Indonesia Resident Mission ( email )

JI. Jenderal Sudirman Kav. 52-53
Jakarta 12190
Indonesia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
119
Abstract Views
464
rank
253,814
PlumX Metrics